KPMG has released a Child Care Subsidy Estimator which illustrates the potential financial challenges faced by mothers who are returning to work.
KPMG has today released a Child Care Subsidy Estimator which illustrates the potential financial challenges faced by mothers who are returning to work.
It follows KPMG's report The cost of coming back: Achieving a better deal for working mothers in October, which revealed the cost that some professionally qualified working mums pay for returning to work, or increasing their days of work, following the birth of their children.
KPMG’s Child Care Subsidy Estimator may be used to compare an estimate of a family’s current Child Care Subsidy (CCS) amount for 2018-19 against the amount the same family might potentially receive under an alternative work or salary arrangement.
The Estimator uses the Workforce Disincentive Rate (WDR) to quantify the amount of extra money working mothers lose when they increase their work hours or salary. The WDR reflects the percentage of any extra money earned under the alternative work or salary arrangement during a whole income year (2018-19) which is lost to increased income tax, Medicare levy and out-of-pocket child care costs and reduced family tax benefits.
The Estimator also allows users to compare the WDR to the alternative WDR that would apply under KPMG proposals to increase the CCS for families in certain income ranges who would otherwise face a WDR of more than 100 percent.
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